Professional Documents
Culture Documents
Marketing Plan
Marketing Plan
Marketing Plan
Code: 201322297
International Marketing
11.11.2016
Executive Summary
This marketing plan explains after a huge research the benefits of taking the international
worldwide-recognized museum Madame Tussauds to Colombia; Madame Tussaud is a wax
museum originally from London, it has branches all around the world in some of the most
attractive cities, the one to open in Bogota will be the first one in Latin America. This museum
displays wax figures of famous people, singers, royals, film artists, sport stars and personalities
known around the globe.
Colombia is the third largest economy in the region; in the last years its economy has grown,
making Colombia one of the 20 fastest growing economies worldwide. Colombia’s growth,
macroeconomic stability, strategic location, trade agreements among other variables make
Colombia an excellent choice for investment.
The target market for this plan is highly explained and characterized during the whole
marketing plan, this museum is intended for people interested in different cultural activities,
people who knows about international figures, that is aware of trends and want different and
unique experiences. The museum is predicted to be a completely success due to the fact that it
would be the first of that kind in the country, making it an exceptional place.
Finally, this marketing plan also displays important information about the expected sales,
incomes, expenses, budgets and profits for the first years. The data showed here
demonstrates that taking the museum to Colombia is a good business idea and that from even
the first year there will be profits of approximately 1 million USD.
Product/Service
The entertainment product that is intended to bring for Colombia in this marketing plan is
Madame Tussauds. Madame Tussauds is a wax museum originally from London, United
Kingdom; Marie Tussaud founded this wax museum in 1835.
Marie Tussaud was born in 1761 in France, she learned the art of wax modeling from Dr.
Philippe Curtius in Switzerland, a physician skilled in wax modeling; her first sculpture was
from Voltaire in 1777, during that period she also modeled Rousseau and Benjamin Franklin.
Through the French Revolution she made many prominent victims sculptures and death
masks. After Curtius died in 1794, Tussaud inherited the doctor’s collection of wax models. In
1802 Marie Tussaud exhibit her work at the Lyceum Theater in London; she couldn’t return to
France because of the Napoleonic wars, and in 1935 she settled down in London and opened a
museum. One of the main attractions on her museum was the chamber of horrors, which
included victims of the French Revolution and figures of famous murders and criminals. During
the following years new famous sculptures were added. Some of the original sculptures made
by Tussaud still exist in the London Museum, Marie Tussaud Died in 1850. Joseph Randall,
Marie’s grandson moved the museum to Marylebone Road, its actual location, in 1883. In 1889
after some capital issues and disagreements between family shareholders, the wax museum
was sold to a group of businessmen.
Today Madame Tussauds wax museum has become a major tourist attraction in London and in
other cities where it is located; currently it displays waxworks of historical and royal figures,
film stars, sports stars, singers and famous murderers. Nowadays Madame Tussauds has
branches in cities all around the world like Beijing, Tokyo, Sydney, Amsterdam, Berlin, New
York, and others.
This museum is envisioned to come to Colombia because this type of entertainment does not
exist in the country, this is an advantage because getting a new product to entertain people
that is not current available in any city of Colombia will attract a lot of consumers, also,
opening a museum like this is an innovative way to make consumers enjoy different options of
distraction that are famous and known worldwide. Also opening Madame Tussauds in
Colombia would make the first in Latin America. See annexes for history and museums around
the world.
The idea is to bring the museum to Colombia with its original idea, displaying wax figures of
famous people, that include not only international figures but also famous Colombian people
recognized worldwide. This will be the first museum and attraction of this type in Colombia,
promoting, not only a new and different way of entertainment which Colombians are not used
to, but also helping improving tourism and interest of people in different cultural activities.
Economic environment:
Colombia has expanded by an average of around five percent (5%) annually over the past five
years. [ CITATION Her16 \l 1033 ]. Colombia is one of the fastest growing economies in South
America due to their well-organized macroeconomic and fiscal administration. Bloomberg
projected Colombia as one of the 20 fastest growing economies of the world in 2015 and 2016;
today Colombia is one of the largest economies in the South and Central America/Caribbean
region after Mexico, Brazil and others, also Colombia is ranked 33 in the global ranking.
Colombia’s economy depends strongly on exports of petroleum, coffee and cut flowers;
recently its economy has been affected by the decline in global commodity prices and tax
increases introduced by the president, Juan Manuel Santos; additionally inflation has changed
and the poverty rate has decrease in the last years.
Colombia’s GDP (Gross Domestic Product) was worth 292.08 billion US dollars in 2015, it
represents the 0.47 percent of the world economy. There are some important rates and
quantities to take in account: the GDP growth rate is 0.2%, the unemployment rate is 8.5&, the
inflation rate is 6.48%, the interest rate is 7.75%, the GDP annual growth rate is 2%, the GDP
per capita is 7448 USD, exports and imports worth 2.72 and 4.24 USD billion respectively,
foreign direct investment is around 3527 USD million, business confidence is 2.5 and consumer
spending is around 87890 COP billion; all this data is from 2016.
In recent years Colombia has been working on some reforms focused on improving regulation
and encouraging a stronger private sector. Particular restrictions affect some service
industries. FDI and domestic investors are generally treated equally, state owned companies
are active in the energy sector while private ones dominate the growing financial sector. The
country’s economic principles include macroeconomic stability and openness to global trade;
these principles remain solid.
On the demand side, home consumption continued to push the economic activity, while the
government consumption and investment have decreased. Exports have fall significantly.
Colombia is expected to have a solid economic growth over the next years, which will support
a growing middle class in the country. [ CITATION Fir16 \l 1033 ]. A city like Medellin is
expected to experience faster growth that the rest of the country thanks to its innovative
mind, economic performance and education institutions.
Social environment:
Colombia has a population of 47.4 million people; its age structure is: 0 - 14 years (24.57%), 15
– 24 years (17.54%), 25 – 54 years (41.82%), 55 – 64 years (8.9%) and 65 years and older
(7.17%). The median age in the country is 29.6 years old; the population growth rate is 1.02%
and the birth rate is 16.3-births/1000 population. The life expectancy is Colombia is 75.7
years. The major cities in Colombia are Bogota, which is the capital, Medellin, Cali, Cartagena,
Barranquilla and Bucaramanga. The official language is Spanish.
The literacy rate in Colombia in people over 15 years old is 91.4 percent, also the Colombian
labor force is among the most competitive and skilled worldwide due to the fact that more
than half the population is under 25 years old.
The number of employed people in Colombia is 22144 thousand, the employment rate is
58.71% and the labor force participation rate is 64.2%. The number of employed persons in
Colombia increased to 22143.67 Thousand in the second quarter of 2016 from 21552.33
Thousand in the first quarter of 2016. [ CITATION Tra16 \l 1033 ].
Technological environment:
Colombia has around 30 million Internet users, to achieve this; the government has invested in
infrastructure projects for making the majority of the population reach broadband
connections. The fact is that 70% of the population has accessed the Internet from September
2013, and 78% of them access daily; therefore the number of users on social networks is very
high.
On the other hand, Colombia has one of the region’s stronger startup technological systems,
with huge potential still waiting. By 2018, the government hopes to have 63 percent of the
country connected to broadband. And according to 2013 GSMA mobile economy figures, there
are already 43.9 million mobile connections and 24 million mobile users in a country whose 47
million people give it the third largest population in Latin America and third largest Spanish-
speaking population in the world. [ CITATION Con14 \l 1033 ] . All the facts mentioned before
are encouraging people for looking into a growing market and creating a stronger culture that
will form the groundwork for the country’s aspirations in innovation.
According to Pedro Moneo, director of the MIT Technology Review magazine, Colombia has a
successfully developed infrastructure for innovation and entrepreneurship, and has also
expanded its connectivity, Moneo emphasize that the challenge now is to become “a center of
global development,” which is an attainable goal if Colombia continues “creating alliances,
business treaties and a fertile ecosystem to facilitate the installation of big companies and
multinationals.
Industry environment:
The entertainment industry, which was not very big in Colombia, has been developing in
recent years. This is reflected in that in recent years the Colombian film industry has grown,
every year the number of artists and concerts in Colombia increases, world-class shows have
come to the country and quickly deplete ticket office. Also, the entertainment industry has
been growing, Colombian consumers are increasingly interested in attending diverse events
and exhibitions, so the sense of bringing Madame Tussauds can be a good idea, as it would
attract a large and growing audience.
Colombian consumers had also showed that they are now not only interested in certain
entertainment activities as they were before, currently Colombians are attending different
events and places which they were not used to. Nowadays people attend concerts, every
international artist that comes to Colombia, rapidly got out of tickets. Shows like plays, theater
performances, comedy shows, artistic exhibitions, painting museum, as well as fashion, home,
pets, books, beauty and cars events are gaining strength and are becoming more popular
among the Colombian consumer.
Despite all, there is not any place like Madame Tussauds in Colombia, the museums that
currently exist across the country display cultural behaviors, history, customs and traditions
but there is no place that exhibits wax figures of famous people that is idea of bringing
Madame Tussauds to Colombia, it will be a unique place.
Competitive environment:
The competition for a product like this in Colombia is neither great or direct, the museums in
Colombia, especially in Bogota are museums about the history, customs, in fact aspects related
to the history of Colombia. Indirect competition may exist for a place like this, this includes
shows like plays, theater, circuses, concerts, films, exhibitions, but actually there is not direct
competition. See perception map on annexes.
Like there is no direct competition, the idea of bringing the museum is great. The competition
is focused on other type of entertaining which gives space to the museum to gain a lot of
consumers and attract them to do and visit different things. This means that the market is
large enough to support not only the competition, but also the product that is intended to
bring. Also, taking Madame Tussauds to Colombia has an enormous competitive advantage; it
is a highly well recognized place worldwide, which gives value to the people that would go,
furthermore it would be a unique place to visit, due to the fact that there is no place like this in
Colombia or even in the region, meaning that this would not only attract local people, but also
people of other regions and maybe of other countries.
Political environment:
In Colombia there are 468 museums registered in the database of the national network of
museums, of which 359 are open, they closed 37, 45 and 27 temporarily closed in the process
of creation. Many of these institutions are closer to being showrooms. These entities are
located in 26 departments and the Capital District and have formed important collections that
form an integral part of the cultural heritage of Colombian in the different categories.
The country's museums are representative of cultural heritage of the nation. The ministry of
culture, through the National Museum, is responsible for the protection, conservation and
development of existing museums and the adoption of incentives for the creation of new
museums in all areas; it also will encourage the active character of museums in the service of
the various levels of education as enriching entities of life and cultural identity.
The principles applied by the Ministry of Culture to manage the museums are: recognition and
respect for cultural diversity, creation and expression freedom; inclusion, support of the
development of multiple cultural identities, interaction between national and international
cultural events and the access to cultural rights and culture.
Strengths:
Signature entertainment, which makes it a visitor attraction.
Interactive experience.
Visitor facilities.
Highly recognized.
Wide range of experience.
Iconic global brand
Strong reputation.
Weaknesses:
Requires huge parking spaces.
Crowded place.
Long queuing.
Language differences.
Opportunities:
Increase brand loyalty.
Target new markets.
Developing a new product mix.
Effective customer handling.
New distribution channels.
Threats:
Competition
Free attractions
Different cultural activities
Market segmentation:
The presence of the middle class and upper class is evident daily in supermarkets, shopping
malls, restaurants, cinemas, places of entertainment and universities, especially in cities. The
boom of shopping centers and department stores is a sign of better purchasing power of
Colombian families. These are people with more job opportunities, because they are prepared
in universities or technology centers.
In Colombia, 92% of the middle class is urban and 8% rural. Of the thirteen major metropolitan
areas, Bucaramanga and Bogota have the highest percentage of population in that segment
(52% and 48%, respectively). The idea of the museum is intended to reach a specific target; it is
logic that not everyone will be interested in attending places like this. Madame Tussauds is a
worldwide-recognized museum, so in Colombia the target market of this museum will be
middle and high class.
The people in this segment are much more interested in joining different cultural activities;
they would visit the place because they have heard of it, the have visited it in other country, or
simply by the fact that going would be “cool”. Also this segment will be in capacity of paying
the ticket to enter, for example, the price of the ticket in Madame Tussauds New York is about
30 dollars, 90.000 Colombian pesos, it is not too high but not everyone can afford it.
Also this attraction would be intended for this target, because they know more about the
figures that are display in a place like this and are more aware of international famous people.
Furthermore this segment would appreciate the design, the value, and the “status” that going
to a place like this in Colombia can give them.
Geographic: The museum will be located in Bogota in a strategic sector; Bogota will be a good
place to locate the museum because is the capital of the country, has a lot of visitors, the
economy of the city is good and it will obtain a fast recognition. The purchasing power of the
families and the income per capita is bigger in Bogota than in any other city; also if the
museum is intended not only for local people but also to customers from other cities or even
countries, Bogota is the city with more visitors in the country.
Demographic: The target of this idea may be people between 15 and 70 years, families and
people interested in different cultural activities, the target might be similar to the target of
entertainment shows that have came to Colombia like the Cirque Du Soleil, the people that
attend this type of events is the same people that would visit a place like Madame Tussauds.
Like said before, the target market of this place would be people of middle and high class,
people with an average income of 2’500.000 COP. The life cycle of the target market of the
museum are families that in a weekend go and lunch in good restaurants, go to shopping
malls, go to watch a movie, attend concerts, plays, etc. The purpose of taking Madame
Tussauds to Colombian is to give them a different way of spending time.
Behavioral: The target market of Madame Tussauds Bogota is people who like to go to
popular places. They are people who follow trends, they want to be aware of what is going on
around them and so, be part of it. They are people who have a smartphone; they are active in
social networks and have real-time knowledge of what is happening worldwide. Going to a site
like Madame Tussauds gives the target status, recognition and acceptance, qualities that they
always look for. When Madame Tussauds opens in Bogota, they will be the first ones to go. As
time passes, the frequency of their visits would be less because the place will not be as “cool”
as it was at the time it opens.
Like said before, the target market of Madame Tussauds museum in Bogota is people that like
products and services of quality, differentiated products and services that give added value to
their experience. The fact of going to a place like this also gives the customer social
recognition, importance and acceptance.
The profile and characteristics of the target segment of the museum in Bogota is share, they
are people of middle and high class with an average high income. They enjoy going to
restaurants, movies, concerts, spent money on them, go to shopping malls. Thy are people
who know about the trends in their environment and want to follow them, are highly
interested in what others have to say and social networks are fundamental for them.
Furthermore, they always in search of recognition, desire products and services that provides
them different and unique experiences.
Mission Statement:
Create magical, unique and different experiences for our visitors and the kind of memories
that last forever. Delivering memorable experiences for our guests.
Product strategy:
Similar to our other Madame Tussauds, the museum will display the wax figures according to
certain categories: cultural and historical figures, political leaders, sport stars, music stars,
world leaders, film stars and international stars. To achieve the position of being a most
dynamic attraction operator, the museum will display also important Colombian figures. Also
the set up is important; decoration, music and interactive areas will be included. The quality of
the museum in Colombia would be the same with of the museums around the world; the idea
is that the same quality standards are managed so that the consumer is satisfied of buying a
service of excellent quality. The idea of bringing a place like this to Colombia is offering the
same experience that is offered elsewhere.
A very important service which the museum must offer to its customers is parking service, the
target of this idea is mobilized by car and would need a place to park the car when they visit
the place, besides the museum should designate a site where people can eat and drink while
doing visit, this creates value for consumers and makes them feel satisfied.
Future services could include: guided tours, touch screens displaying important information
about the figure, professional photographer and a merchandise store where customers can
buy different products related to the museum.
It is also important to know the consumer preferences and tastes, it is clue to know exactly
what they like to reach out more easily and meet their expectations. To reach easier what the
consumer who want, it is important to present all the features of the museum, explaining his
career, recognition, all of its advantages and what makes it so recognized and famous all over
the world, this attract customers to visit it and making information transmitted to many
people, making the museum generates greater acceptance.
Place strategy:
As it is projected that the target for the museum is high and upper middle class, it must be
located in a strategic place of Bogota, where consumers can access to it easily, have amenities
like parking and food for having a more confortable visit. Also locating the place in a privileged
site gives status to the museum, the important factor is to place it on a site with high traffic of
people and the location is good for people to who is addressed.
Price strategy:
The price strategy would that might used for this museum is simple, as it would be focused to
an specific target, there would be no problem with the price, the idea for the ticket is charged
in average what is charged in other Madame Tussauds museums in the world, for example, the
New York museum has an entry of about 30 dollars, this would be what would be charge on
average to access the place and enjoy the figures display in it. For additional services it would
be charged an extra amount.
Promotion Strategy:
Madame Tussauds Bogota will use various modes of promotion to aware the visitors
throughout the city and the country; advertisement, sales promotion, public relations,
personal selling, direct marketing, sponsorship, events and displays are the communication
tools through which the museum will communicate to the people.
Product promotion can be done through social networks, it is a fast and effective way to make
consumers know the place, is also a quick way for information to be transmitted voice to voice.
Another way to promote it can be advertising in different places, making people become
aware of the museum and wanting to go there. For the sale of the ticket, it could be done
through internet, online shopping in Colombia has grown in recent years and consumers feel
safer buying online, this gives a plus to the place because that way consumers can buy the
tickets from home or from their smartphones, and the don’t need to make line at the museum
for purchasing tickets. Multichannel distribution will be very important to make the museum
wide known.
Reading newspapers and magazines is popular in Colombia. Therefore, Madame Tussauds will
approach leading national newspapers to secure advanced coverage. Furthermore, press
conferences will be held when new figures arrive. Also a website will provide valuable
information about Madame Tussauds history, news, the location, prices and special offers as it
has in every city in which it is located. Tickets can be booked online.
Implementation:
After evaluating he different ways to enter new markets, Madame Tussauds will be established
as a wholly- owned subsidiary. Even though the risk and costs involved are the high, it is still
the best option. First of all, an important advantage is the operational and strategic control
that a parent company can exercise over its subsidiary. The level of control is likely to be
higher for the first few months of a subsidiary's operation, making the subsidiary in Bogota
look and provide the same service that is offers worldwide; also, it is easier to establish
common operating processes, especially when a parent company sends its executives to
manage its subsidiaries. There is less risk of losing intellectual property to the competition
because the parent can implement common data access and security protocols.
Finally, a wholly owned subsidiary reduces the risk of losing control over core competencies,
furthermore it gives a company the control over operations in different countries that are
necessary for engaging in global strategic coordination.
The following charts represent the some of the rates that are expected after opening Madame
Tussauds Museum in Bogota, the tables show what are the projected number of customers,
the expected growth, expenses as well as the quantity that will be invested in marketing to
make the place known aggressively. The charts indicate the data and rates expected for the
first four years of operation. See graphs in annexes.
Expected sales 2018 (year 1) 2019 (year 2) 2020 (year 3) 2021 (year 4)
Number of
100.000 112.000 125.440 140.492
visitors
Ticket price
29 32.5 36 38.4
(USD)
Income (USD) 2’900.000 3’640.000 4’515.840 5’394.892
Expenses 2018 (year 1) 2019 (year 2) 2020 (year 3) 2021 (year 4)
Making of wax
800.000 400.000 100.000 100.000
figures (USD)
Website (USD) 20.000 8.000 8.200 8.400
Opening costs
500.000 0 0 0
(USD)
Maintenance
20.000 22.400 23.000 23.000
(USD)
Total expenses
1’440.000 542.400 249.200 249.400
(USD)
Marketing
2018 (year 1) 2019 (year 2) 2020 (year 3) 2021 (year 4)
Budget
Advertising
25.000 31.000 31.000 32.500
(USD)
Marketing staff
37.000 40.000 43.500 44.000
(USD)
Marketing
10.000 7.000 5.000 5.000
research (USD)
Sponsorship
30.000 50.000 50.000 50.000
(USD)
Magazine and
newspapers 17.000 15.000 11.000 8.000
(USD)
Other marketing
12.000 12.000 13.000 17.000
activities (USD)
Total marketing
122.000 155.000 153.500 156.500
budget (USD)
Expected profits 2018 (year 1) 2019 (year 2) 2020 (year 3) 2021 (year 4)
Income (USD) 2’900.000 3’640.000 4’515.840 5’394.892
Total expenses
1’440.000 542.400 249.200 249.400
(USD)
Total marketing 122.000 155.000 153.500 156.500
budget (USD)
Total expected
1’338.000 2’943.000 4’113.140 4’988. 992
profits (USD)
The marketing plan does not end with its implementation; continued monitoring and
adaptation is needed to fulfill customer needs and wants. In order to measure the
development and performance of the museum is important to monitor rates as revenue,
expenses and growth.
Product changes and/or adaptations will be based on customer feedback and results from
market research. It is also very important that Madame Tussauds Bogota control customer
service. Furthermore, managers will visit the attraction twice a year to monitor staff
performance and receive feed on their performance and operations.
Final conclusion
The analysis and research presented above has shown Bogota as a location for a new Madame
Tussauds offers great opportunities. With our strengths in providing memorable experiences,
accompanied by experience and unique services, we will properly address the Colombian
consumer, for whom leisure plays an important role in life. By entering Colombia, the business
will further grow and strengthen the brand. Finally, the research, information and data
presented provide the support that taking Madame Tussauds to Colombia is a great idea.
Year Event
Source: Author
High
High price
Concerts
Low price
Source: Author
6000000
5000000
4000000
3000000
2000000
1000000
0
1 2 3 4
Expected profits per year (USD):
6000000
5000000
4000000
3000000
2000000
1000000
0
1 2 3 4
Source: Author
Bibliography
UK Essays. (14 de 03 de 2015). Pest Analysis For Madame Tussauds Marketing Essay.
Recuperado el 4 de 11 de 2016, de UK Essays:
https://www.ukessays.com/essays/marketing/pest-analysis-for-madame-tussauds-
marketing-essay.php
Information to make the marketing mix.